October 9, 2020 | technology | No Comments
This morning, YCharts, a financial data and charting service, announced that it has been purchased by LLR Partners, a private equity firm.
The companies are dubbing the transaction a “growth recapitalization,” indicating that the smaller firm won’t be stripped of its talent in hopes of driving near-term positive EBITDA. The deal was an all-cash transaction, TechCrunch confirmed.
Digging into YCharts itself, the company told TechCrunch via email that it expects to “surpass” $15 million in annual recurring revenue (ARR) this year, and that it has been growing top line at a compound annual growth rate of 30 to 40% for “the past several years.”
Those figures imply that YCharts did not sell for cheap. At the market’s current multiples, YCharts was likely worth between 10 and 20x times its ARR, making the deal (presuming, say, $13.5 million ARR at the time of the sale) worth between $135 million and $270